Oct. 22 at 3:55 AM
$DERM per ChatGPT.
Assumptions & Calculation
250,000 prescriptions/year ×
$600 net revenue per prescription =
$150 million annual net revenue for Emrosi.
We assume that this revenue accrues to Journey (i.e., this is “net” to the company, not gross).
We need to apply a valuation multiple to that revenue to estimate company value. For a small specialty pharma/dermatology firm: say a sales multiple in the range ~ 5× to ~ 10× (could be higher if growth is very strong and risk is low).
At 5×: Company valuation ≈
$150 m × 5 =
$750 million
At 10×: Company valuation ≈
$150 m × 10 =
$1.X,500 million
Next: shares outstanding. According to recent data, Journey has around ~23–26 million shares outstanding.
StockAnalysis
+2
CompaniesMarketCap
+2
If we take ~24 million shares for simplicity:
$750 m ÷ 24 m shares =
$31.25/share
$1.X,500 m ÷ 24 m shares =
$62.50/share
So under those assumptions, if Emrosi reaches 250,000 prescriptions/year at
$600 net revenue each,
$50/SP is realistic.
